Leave Pay Statement (or Vacation pay)

Owned by Daria Chebotaieva
Last updated: Feb 25, 2022 by Halvard Meijer
4 min read

This article explains the logic of the standard, in-build, payroll report called Leave Pay Statement

1) Global Rates in Use

This report calculates some of the values using global rates that are hard-coded into the report.

  • GB6 is ordinary Vacation Pay %

a) For 5 weeks of Vacation a person earns 12 % of Vacation Pay (most of the companies prefer to use this %).

b) For 4 weeks and 2 days of vacation a person earns 10.2 % of Vacation Pay (not so often used)

Thus in GB6, it should be either 12 % or 10.2 %

  • GB7 is Vacation Pay % for people who are above 60 years old. Currently, it is always 2,3 %.

  • GB10 is called in Norway as 1G amount. It is changed yearly on the 1st of May and should be updated in time.

2) Report Calculation Logic

  • "Feriepenge grunnlag"/"Basis Holiday Pay" (shown as "Feriepenge" in the picture above) comes from the Accumulator selected in the Report dialogue window

  • “Leave pay” and “Leave Pay Over 60 years” columns are calculated using GB6, GB7.

  • “Leave Pay Over 60 years” column takes into account the 6Gs rule: if the person earned more vacation pay than GB10 * 6, then Leave Pay Over 60 years will not be calculated using extra percent in GB 7 – 2,3% and in total it will be 12% instead of 14.3 %.

  • "Feriepen avsatt" takes the value from L63 on the Entry Code.

  • "Differanse" shows amounts if there is a difference between the amounts calculated in "Leave Pay" and "Leave Pay Over 60 years" vs the amount in "Feriepen avsatt".

4) Entry Code Calculation for "Feriepen avsatt"

Let’s check EC 001 Fast lønn (Fixed Wages) as an example that calculates "Feriepen avsatt in L63".

In the script below we can see that L63 takes into account the Current Rate field (P46a) on the Constants tab.

Inthe Current Rate field the value is picked up automatically from Global rates (GB). The fields are disabled for manual input.

e.g. For vacation pay under 60 we use GB6 (12%) – 0.12000

e.g. For vacation pay above 60 we use GB6 (12%) + GB 7 (2,3 %) and thus we get 14,3% - 0.1430

You can overwrite this value manually by typing the percentage (1-100) in the Rate field.

Employees missing calculation of "Leave Pay"/"Leave Pay Over 60 years" in Leave Pay Statement report

 If an employee is missing calculation of "Leave Pay" and/or "Leave Pay Over 60 years" and has an amount in "Basis Holiday Pay" in the report like this:

The "Current Rate" in Leave Pay under Payroll > Constants has a value 0,00000.

This comes from one of 3 things:

  1. The Global rates 6 and 7 are missing in the Organization Structure setup - see the first part of an article on where to find the rates.

  2. The Rate field has been manually updated with a value 0.

  3. The payscale the person is connected to in Person Details > Seniority has Leave Pay Fraction set to 0, either on Payscale Table and/or on Payscale code: 

If the issue is caused by point 1, add the correct value in Global rate 6 and/or 7, click applies and close the window.

If the issue is caused by point 2, remove the value 0 and leave the field blank, save and repeat for all employees missing calculations in the report. The Refresh system did.

If the issue is caused by point 3, remove the value 0 and leave the field blank in Payscale Table properties and/or Payscale Code Details. Save and exit the payscale setup.

Run the report once more, and the amounts should be calculated on the persons that were missing calculations of "Leave Pay" and/or "Leave Pay Over 60 years".